Can Dogecoin Rescue the Meme Market?

As the leading memecoin by market cap, Dogecoin [DOGE] will be a good indicator of the health of the sector at large.

The memecoin market has seen a sharp decline since December 9th, with a 39.4% loss in total market capitalization. Throughout the past month, the price charts for the majority of memecoins have shown a consistent downward trend.

Bitcoin's volatility around the $100k mark has impacted the altcoin market, including the memecoin sector.

Despite the launch of Official Trump [TRUMP], it failed to provide any relief to the market. As the token's price surged rapidly, holders were prompted to sell their other memecoin holdings to acquire TRUMP.

After reaching an all-time high of $73.43 on January 19th, TRUMP experienced a steep decline, losing 71% over two weeks.

The token breached the lower boundary of a short-term range on the price chart, indicating a potential continuation of lower lows. The Accumulation/Distribution (A/D) line also showed a lack of strength in the uptrend.

This price action with TRUMP may discourage the public from purchasing memecoins in the near future.

Can Dogecoin save the meme market?

As the leading memecoin by market capitalization, Dogecoin [DOGE] serves as a valuable indicator for the overall health of the memecoin sector.

At the time of writing, it shared a +0.89 correlation with Shiba Inu [SHIB], indicating a close alignment in the performance of the major memecoins with the sector leader's movements.

As highlighted by the Santiment data above, DOGE has consistently maintained a higher social dominance compared to SHIB or Pepe [PEPE].

Social dominance refers to the percentage share of a coin's mentions in social media discussions.

The on-chain metrics, however, presented a bullish outlook. The dormant circulation did not indicate any large-scale token movements, which usually precede selling waves.

Furthermore, the mean coin age has been on the rise for the past six weeks, despite the inability of the price to trend higher.

The 60-day MVRV was in negative territory, suggesting that short to medium term holders were facing losses, which could contribute to a buying response.

Check out Dogecoin's [DOGE] Price Prediction 2025-26

The orderbook data highlighted the key support and resistance levels for the upcoming sessions. A concentration of limit buy orders at round numbers like $0.28, $0.27, and $0.26 indicated a potential price movement toward these levels prior to a reversal.

The orders imbalance within the 10% range around the current price showed a偏好for buyers, adding to the possibility of a short-term bullish reversal.